Private sector sees 3% growth in exports
THE PRIVATE sector now accepts that Thailand’s overseas shipments could expand by as much as 3 per cent this year, but says the government needs to push support for the farm sector as a priority if this is going to be achieved.
The government, however, is maintaining its target of exports achieving 5-per-cent growth, as it expects the challenging goal to encourage closer collaboration among the private and state sectors to see that it has every chance of being met. After discussing the matter with private enterprises, Deputy Commerce Minister Suvit Maesincee said on Friday that exporters had agreed that export growth of 3 per cent was achievable this year.
The figure is higher than the private sector’s previous target of 2.2 per cent, and has been agreed on the basis that the government seriously help unlock export problems and take measures to drive shipments of farm crops. As a priority measure to help drive shipments, exporters called for the government to accelerate the release of rice from its stockpiles and export rice under government-to-government contracts as much as possible.
It also called for the government to facilitate added value for farm products from crops such as rubber, rice and tapioca, and for processed foods.
With the slowdown of economic growth in China, exporters have also asked for the government to support shipments to ‘new’ markets with good potential, with Cambodia, Laos, Myanmar and Vietnam being highlighted this year. Moreover, the government should support Thai companies in making their own products and creating their own brands, which would help increase the value of the Kingdom’s exports.
Under the long-term plan, Suvit said the country needed to restructure its export-sector structure, with a shift from relying mainly on multinational corporations to the involvement of more local companies in exporting. According to a study by the Commerce Ministry and the private sector, 43 per cent of export value is currently contributed by multinationals, 27 per cent by joint-venture companies, and only 30 per cent by Thai firms.
Of the purely Thai companies that are engaged in exports, about 90 per cent are original-equipment manufacturers or only make goods to order for exporting, while just 10 per cent have their own brand products. The deputy minister said Thailand needed to see a shift of export emphasis to local businesses, as multinational companies had their agendas set by their parent firms and, if they decided to move their manufacturing bases, the country’s shipments would be severely hit.
He said the government would therefore help support local enterprises to produce their own products and create brands for export, in order to ensure the country’s sustainable trading growth.
Services also in focus
Moreover, the government will support the export of services, which currently account for 25 per cent of gross domestic product.
Products and services in focus for driving future export growth are foods, gems and jewellery, fashion and lifestyle products, arts and crafts, education, logistics, hospitality services, and medical and healthcare services.
Meanwhile, Suvit said Deputy Prime Minister Somkid Jatusripitak would delay the private-sector mission he had planned to lead to Iran this month.
Somkid and Deputy PM Prawit Wongsuwan will instead lead official delegations and about 50 Thai companies to Iran in the near future with a view to tightening cooperation in the political, security and economic fields. Thailand will also strengthen cooperation in trade, investment and tourism with Iran, which should see United Nations sanctions unlocked by the end of this month.
